Buying a Consignment Car

[kbing]

when buying consignment car from dealer, who will be responsible to clean up and repair any damages before hand over?

 

If anything mechanical problem found after taking over, is it protected by "lemon law"? claim from previous owner or dealer?

[Thaiyotakamli]

It only mean dealer help to sell and process the paper only

 

 

Any prob go for the owner

[alex976]

when buying consignment car from dealer, who will be responsible to clean up and repair any damages before hand over?

 

If anything mechanical problem found after taking over, is it protected by "lemon law"? claim from previous owner or dealer?

 

A consignment car falls under " willing buyer and willing seller". The dealer in this case is the facilitator for paperwork (for LTA transfer of ownership and loan applications).

 

A consignment car is not covered under the lemon law. lemon law can only protect a consumer if he or she buys directly from the dealer ( 2nd hand dealer or Authorized dealers).

 

Here is the big big difference of buying a consignment car. In the event that something mechanically is wrong with the car, the buyer is not protected and cant claim from the previous owner. When buying a consignment car, buyers must exercise extra diligence in comparing prices, check for existing warranty of the vehicle, mechanical and electrical components of the vehicle.

 

Some buyers will say under the sales contract/ agreement say the sellers must do this and that. Bear in mind that once the transfer of ownership is complete and you have driven the car away, chances of you being able to claim from the previous owner is very very hard.

[Chowyunfatt]

 

A consignment car falls under " willing buyer and willing seller". The dealer in this case is the facilitator for paperwork (for LTA transfer of ownership and loan applications).

 

A consignment car is not covered under the lemon law. lemon law can only protect a consumer if he or she buys directly from the dealer ( 2nd hand dealer or Authorized dealers).

 

Here is the big big difference of buying a consignment car. In the event that something mechanically is wrong with the car, the buyer is not protected and cant claim from the previous owner. When buying a consignment car, buyers must exercise extra diligence in comparing prices, check for existing warranty of the vehicle, mechanical and electrical components of the vehicle.

 

Some buyers will say under the sales contract/ agreement say the sellers must do this and that. Bear in mind that once the transfer of ownership is complete and you have driven the car away, chances of you being able to claim from the previous owner is very very hard.

 

Thank you, I learn something new today ...

[kbing]

hmm...saw a car in sgcarmart and the price is few K cheaper than other similar model.

 

called the dealer and told me that it is consignment car and need to book a time for the owner to drive down for viewing.

 

shall i give it a miss since it is not covered by lemon law? some more it is a 8 years old car

[alex976]

 

Thank you, I learn something new today ...

 

You are welcome. I learn it when i sold my car a few months ago.

[Notsogoodman]

hmm...saw a car in sgcarmart and the price is few K cheaper than other similar model.

 

called the dealer and told me that it is consignment car and need to book a time for the owner to drive down for viewing.

 

shall i give it a miss since it is not covered by lemon law? some more it is a 8 years old car

 

Well, u save a few Ks loh..... Even if it's covered by lemon law, claiming items might not be easy... Many things fall under wear & tear

 

If it's a consignment car, ask the dealer to get the seller to bring along his servicing & parts change receipts

[kbing]

Well, u save a few Ks loh..... Even if it's covered by lemon law, claiming items might not be easy... Many things fall under wear & tear

 

If it's a consignment car, ask the dealer to get the seller to bring along his servicing & parts change receipts

 

for consignment car, who will be paying the commission/admin fee?

[Soya]

 

A consignment car falls under " willing buyer and willing seller". The dealer in this case is the facilitator for paperwork (for LTA transfer of ownership and loan applications).

 

A consignment car is not covered under the lemon law. lemon law can only protect a consumer if he or she buys directly from the dealer ( 2nd hand dealer or Authorized dealers).

 

Here is the big big difference of buying a consignment car. In the event that something mechanically is wrong with the car, the buyer is not protected and cant claim from the previous owner. When buying a consignment car, buyers must exercise extra diligence in comparing prices, check for existing warranty of the vehicle, mechanical and electrical components of the vehicle.

 

Some buyers will say under the sales contract/ agreement say the sellers must do this and that. Bear in mind that once the transfer of ownership is complete and you have driven the car away, chances of you being able to claim from the previous owner is very very hard.

 

To me, this is juz a major loophole by dealers to avoid the lemon law. How to tell if it's really consignment car?

[alex976]

 

for consignment car, who will be paying the commission/admin fee?

 

In my case when i sold my car the other time, the agent actually sourced the buyer for me so i had to pay the admin fee which is either 1% of selling price or $900 (which ever is higher).

[kbing]

 

In my case when i sold my car the other time, the agent actually sourced the buyer for me so i had to pay the admin fee which is either 1% of selling price or $900 (which ever is higher).

 

I just sold my old car and saw the dealer put up an ads with almost $10K markup!

 

why a dealer will want to do consignment with just $900 profit?

[alex976]

 

I just sold my old car and saw the dealer put up an ads with almost $10K markup!

 

why a dealer will want to do consignment with just $900 profit?

 

Kbing, for 2nd hand car dealers they have to mark up 10k when they buy the car from you. The reasons are very simple.

 

1. The 2nd hand dealers mostly will take a loan which is at an interest of 1.25% per month. ( to those unfamiliar you might think its a small sum of $$ but actually if the dealer cant get rid of the car within 6 months he or she will die from the interest)

 

2. The dealer need to cover overhead like rent and salary of their staff.

 

Y dealers will do consignment is that besides the fee from the seller, the dealer will earn loan commission plus insurance commission. The dealers dont have to take a loan to purchase the car from the seller or whatever. Lowers the business risk.

[LoverofCar]

I brough a consignment car about 14 years ago. The price I got is better than a proper set up 2nd hand car dealer. Basically, the consignment car dealer is just doing the paper work and advertising for the car owner. The car is still driven by the owner...if want to test drive...the car owner will bring down the car to the agreed location. The dealer will nego the price and pocket admin fee and perhaps the different between seller and buyer price..Advantage is that the dealer do not have any overhead, or risk outlay so he can sell the car to you at a slighly better price. he is just a middle man for the deal.

Edited September 16, 2014 by LoverofCar

[kbing]

One of the biggest AD is helping an owner to sell away his old ride, however the owner is oversea for 2 weeks.

 

in that case, how the payment or paper work going to be done?

 

The AD is not acting as a dealer, but just helping the owner to get rid of the car without any admin charges.

 

Any risk for me if I pay in full (by cash or cheque), take the key and car...and then wait for the owner to come back to settle the transfer of ownership?

 

How about the insurance? Can i still buy insurance if the transfer not done yet? Or can i still drive for 2 weeks under previous owner insurance?

 

[LoverofCar]

One of the biggest AD is helping an owner to sell away his old ride, however the owner is oversea for 2 weeks.

 

in that case, how the payment or paper work going to be done?

 

The AD is not acting as a dealer, but just helping the owner to get rid of the car without any admin charges.

 

Any risk for me if I pay in full (by cash or cheque), take the key and car...and then wait for the owner to come back to settle the transfer of ownership?

 

How about the insurance? Can i still buy insurance if the transfer not done yet? Or can i still drive for 2 weeks under previous owner insurance?

 

Just put a down payment to secure the deal lah... two weeks is not long to wait for owner to be back..

[alex976]

One of the biggest AD is helping an owner to sell away his old ride, however the owner is oversea for 2 weeks.

 

in that case, how the payment or paper work going to be done?

 

The AD is not acting as a dealer, but just helping the owner to get rid of the car without any admin charges.

 

Any risk for me if I pay in full (by cash or cheque), take the key and car...and then wait for the owner to come back to settle the transfer of ownership?

 

How about the insurance? Can i still buy insurance if the transfer not done yet? Or can i still drive for 2 weeks under previous owner insurance?

 

 

As long as the owner has authorized the AD to act on his or her behalf (check authorization letter) and also check for the LTA transfer pin. With the LTA transfer pin, the owner presence is not required and the ownership of the vehicle can be transferred almost immediately without having to go down to LTA anymore.

 

Best is to pay the deposit via cheque. Bear in mind to check that the vehicle does not have any outstanding loan left for those paying in full. If you take a loan, the bank will not approve the loan for a vehicle whose outstanding loan is not cleared.

 

Insurance wise you can start sourcing if you know the details of the vehicle such as model, year of make and etc. to prevent any dispute best is not to drive the car under the previous owner's insurance (you never know what is his or her excess in the event you get into an accident).

[Tohto]

My current car bought about 3.5yrs ago was also a consignment car.

Basically the dealer give me the contact of the owner, we arrange a meet up. Discuss the price and test drive the car.

Dealer help to process the LTA transaction, loan and insurance.

[Wanderer2911]

My current car bought about 3.5yrs ago was also a consignment car.

Basically the dealer give me the contact of the owner, we arrange a meet up. Discuss the price and test drive the car.

Dealer help to process the LTA transaction, loan and insurance.

 

Hi I am getting a consignemnt car as well but I got my own loan and own insurance (not through dealer), which explains why my dealer is not really helpful in letting me understand the whole transfer procedure. I would like to ask the following:

 

1. Do you pay the downpayment to dealer or to owner directly?

2. If pay to owner, does the owner gives you any receipt as prove of receiving the payment?

 

My dealer ask me to issue the downpayment cheque under his name (instead of his company) which I feel super dodgy. I know he needs to clear off the existing owner's loan before he can get the car's log card and with the log card my bank can disburse my car loan. But issuing a checque to his name doesn't seem to be the correct way.

 

Appreciate your feedback.